Raising a big loan is a major issue and there are different ways in which you can do it. You might want to bank on your credit card company or take bank loans, but you know very well the complications that you might risk getting into with these options. Your credit card company will ask you to satisfy a number of clauses whereas banks will have endless evaluations which might delay the delivery of money when you need it the most.

If you remember before the credit card concept came into the market, we used to simply call up a lender and would get money in a single step by mortgaging an asset. Otherwise you wouldn’t have had to mortgage. You’d simply show some asset for credibility on which you could loan money. This was a simple transaction and was by far the fastest and most convenient. Even today, loaning money from private lenders seems to be the best way to borrow money in comparison to many other methods like the ones mentioned above. Think about the numerous fees that you’ve got to pay your credit card company or bank for borrowing money. First of all, why would I borrow money if I had money with me is a logical question that I’d like to ask all these crediting companies and banks. Borrowing money from a lender only necessitates me to pay interest for a specific period of time. Nowadays with crediting companies raising their fees after the new credit rules proposed by the government in the Credit Card Accountability, Responsibility and Disclosure Act 2009 , I think I’ll opt for the olden and simple option of loaning from a credible lender.

There are still other reasons why I think a mortgage lender is preferable. If you visit a lending company, these days you’ll get only 80-85 of the value of the property you intend to loan for. Earlier you’d get about 95 -100 percent or more but now lenders have slashed the amount of money they lend. Other than that the lending most often involves an internal valuation of your asset which by itself is an expensive process. You can always visit the Nationwide  Lending Corporation price estimators to get a preliminary idea of the amount of money you could borrow on your property.

The next point that you should consider is the sky-rocketed fees charged by some lending companies just for arranging your loan on top of the usual lump-some as product fee. Consider Halifex for example, which charges £99 as the arrangement fee + £499 for a two-year fixed loan or £1,249 for a three year tracking loan. If you calculate the total fees that you have to pay along with the money you’ve borrowed you’ll definitely want to shun these big lending companies and go to that good old mortgage lender you’ve known to have served you during tough times before.

If you think you’ve done a wise thing by going for some ‘fee-free’ lending companies , be sure to know that these ‘good Samaritans’ are actually going to compensate their income by charging you higher income rates. This is what some ‘secured loan’ providers like Ocean Finance, Black Horse Personal Finance and Platinum Loans are doing.

When you are going for personal loans don’t go for some complex debt with repayment insurance attached. You’ll only end up paying more interest and any other amounts that the fee demands. Alliance & Leicester, Tesco and Asda are some of the smaller loaning companies that you can think of loaning firms that you can visit as they charge lesser than 9 % on interest. Don’t go for big companies like Virgin Money and Direct Line only for borrowing for personal loans.